The European Union and Latin America

The European Union and Latin America

Updated January 4, 2018
The European Union and Latin America
Background
conflict initiatives—and how to address the political
The European Union’s (EU’s) interest in developing closer
instability in Venezuela.
relations with the Latin America/Caribbean (LAC) region
was formalized in 1990, when the EU held its first summit
EU-Latin America and the Caribbean
with the former Rio Group, which became the official

forum for the political dialogue between the EU and Latin

EU: 28 member states; CELAC: 33 member states.
America (the Rio Group was founded in 1986 by 6 Latin

Population of both EU and CELAC member states: 1.1
America countries and later expanded to 23). The EU and
bil ion.
Rio Group members met approximately every two years at

European Union GDP (2016): approx. €14 tril ion.
the ministerial level and addressed issues of common

CELAC countries GDP (2015); approx. $6 tril ion.
interest ranging from trade to human rights to poverty

reduction, security, and the narcotics trade. In 1999, in an

EU is 2nd largest trading partner for the CELAC region
effort to elevate the importance of EU-LAC relations, the
(2013), tied with China and behind the United States.
EU-Latin America and Caribbean Summit process was
CELAC is 5th largest partner for the EU. The EU imported
created. These summits, which met in the years between the
€95.9 bil ion worth of goods from and exported goods
EU-Rio Group ministerial meetings, brought together the
worth €117.4 bil ion to the region in 2015.
highest-ranking EU officials and the heads of state and

Trade in goods between EU and LAC is approximately €215
government of the LAC region. They introduced additional
bil ion (2015). Trade in services is approximately €80 bil ion
topics to the dialogue, including climate change, economic
(2014).
and financial issues, research and innovation developments,

EU is a leader in foreign direct investment (FDI) in the
and energy.
CELAC region, amounting to approximately €642 bil ion
(2015), greater than EU FDI in Russia, China, or India.
In 2010, the Community of Latin American and Caribbean

CELAC region FDI in EU is led by Brazil and Mexico.
States (CELAC) was launched as a new mechanism for the
LAC regional political dialogue, replacing the Rio Group
Sources: United Nations, European External Action Service
and incorporating 33 LAC countries. Significantly, CELAC
(EEAS), Eurostat, World Bank.
does not include the United States or Canada, both of which

interact with the nations of the LAC in the Organization of
American States. CELAC also replaced the Rio Group as
Although the EU-CELAC organization represents a highly
the framework for EU-LAC dialogue.
visible acknowledgement of the relationship between the
EU and the LAC region, it is only one example of EU-LAC
Political Dimension
engagement. In addition, EU High Representative Federica
The political framework for EU-CELAC cooperation was
Mogherini has visited the LAC region on several occasions,
defined in the EU-CELAC Summits, which were proposed
including attending the EU-CELAC ministerial meetings.
to be held every two years. The first EU-CELAC Summit
Additional dialogues between the EU and the LAC region
was held in 2013 in Santiago, Chile, and the second was
take place in the form of the EU-LAC Trade Union
held in 2015 in Brussels. At Brussels, 61 EU and LAC
Conference, the EU-CELAC Organized Civil Society
leaders, including more than 40 heads of state or
Forum, EU-CELAC Youth Days, the EU-CELAC
government adopted an EU-CELAC Action Plan. The plan
Academic Summit, and the EU-CELAC Business Summit.
identified 10 priority areas for bi-regional cooperation,
An EU-LAC Foundation, headquartered in Hamburg,
ranging from science and research, sustainable
Germany, was created in 2010 to promote a
development, energy, and climate change to investment and
nongovernmental economic and sociocultural partnership
entrepreneurship. Ministerial-level meetings would be held
between the two regions that would advance mutual
on a regular basis to address the action plan. The third EU-
understanding and common values between the EU and
CELAC Summit is scheduled for 2018.
LAC member states.
At Brussels, EU and LAC leaders also mandated that the
In 2014, the EU launched its Agenda for Change, with the
foreign ministers of the region hold meetings in the years
view of increasing the impact of EU development policy.
between summits to enhance the political dialogue. The
The agenda shifted EU assistance from a primarily bilateral
first stand-alone EU-CELAC foreign ministers meeting
approach to a more regional one, including to the LAC. The
took place in October 2016 in Santo Domingo. During the
overall allocation for the budget period 2014-2020 amounts
session, the ministers discussed issues such as relations
to approximately €925 million for Latin America and some
with Cuba, the peace process in Colombia—during which
€346 million for the Caribbean.
the EU announced the creation of a fund to support post-
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The European Union and Latin America
The European Investment Bank also has allocated
agreements (FTAs) with Colombia, Peru, and Mexico; and
approximately €2.3billion for Latin America for the period
an Economic Partnership with the Caribbean. Negotiations
2014-2020 to support EU initiatives in the development of
with Ecuador continue, as do negotiations for an FTA with
social and economic infrastructure, climate change
the Mercosur countries.
mitigation, and private sector development.
Parliamentary Dimension
In addition to CELAC, the EU maintains separate political
The EU’s relationship with Latin America includes an
dialogues with the various regions and countries of LAC,
important parliamentary dimension. In 2006, the Euro-Latin
including Mercosur (Argentina, Brazil, Paraguay, Uruguay,
American Parliamentary Assembly (EuroLat) was
and Venezuela), the Andean Community (Bolivia, Ecuador,
established. EuroLat consists of 150 members, 75 from the
Colombia, and Peru), Central America, the non-Europe
European Parliament and 75 from various Latin American
linked Caribbean, and Mexico.
legislatures, including the Andean, Central American, and
Mercosur parliaments. Parliamentarians from Mexico and
EU cooperation with the six Central American countries
Chile also are included. Two co-presidents, currently
(Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua,
Ramon Jauregu A Tondo (Spain) and Roberto Requiao
and Panama) was initiated in 1984 by the San Jose
(Brazil), lead the assembly. Fourteen vice presidents (seven
Dialogue. The dialogue was initially established to support
from each region) also make up the Executive Bureau.
the various peace processes and efforts of democratization
There are four standing committees, which consider issues
in the region. Since then, the dialogue has been broadened
of mutual interest to the two regions and help to develop
to include economic and social development, migration,
recommendations and resolutions that could be submitted
and security. In June 2012, the first region-to-region
for action to the various ministerial groups and to the EU-
Association Agreement was concluded between the EU and
CELAC Summit.
Central America. The agreement is based on three pillars—
political dialogue, cooperation, and trade.
Going Forward
Although there has been a long historical relationship
The EU and Cuba established diplomatic relations in 1988.
between Latin America, the Caribbean, and parts of
An EU representation office, which was opened in Havana
Europe—including Spain, Portugal, the United Kingdom,
in 2003, was upgraded to a fully-fledged delegation in
the Netherlands, and France—modern relations between the
2008. In April 2014, the EU and Cuba launched
EU and Latin America have recently gained a good deal of
negotiations for a bilateral Political Dialogue and
renewed energy, particularly along the lines of political
Cooperation Agreement (PDCA). The talks were concluded
cooperation and trade.
in March 2016. On July 5, 2017, the European Parliament
approved the agreement, opening a new phase in EU-Cuba
The emergence of China as a major economic force and
bilateral relations. The EU is Cuba’s main export partner
competitor of the EU in the LAC has become a cause for
and second overall trade partner, after Venezuela. The EU
concern in Brussels. China, with a huge market for the
is also the biggest foreign investor in Cuba (mainly tourism,
commodities and resources Latin America can export and
billions of dollars to invest (a proposed €250 billion), has
construction, light and agro-industries) and accounts for a
third of Cuba’s
become a challenge to the EU’s position in Latin America
foreign visitors.
and a prime driver of EU’s increased engagement in the
The EU’s interest in developing closer relations with
region. The EU’s inability to complete its trade agenda in
Mercosur, one of Latin America’s largest regional
parts of the LAC region, particularly with Mercosur, also
integration projects, formally began in 1995, when the EU
has driven EU interest.
and Mercosur signed an Interregional Cooperation
Although the United States remains the major political,
Framework Agreement. The agreement’s objectives were to
economic, and trade influence in the LAC region, the EU
develop a more comprehensive political and economic
has worked closely with Washington on regional issues
association and to establish reciprocal liberalization of trade
such as counternarcotics, disaster relief, and, most recently,
between the two regions. The Framework Agreement went
the Colombia peace process and sanctions on the Maduro
into force in 1999. After a six-year suspension, negotiations
government in Venezuela. However, due to the
on an Association Agreement were relaunched in May
uncertainties of the Trump Administration’s long-term
2010. Both sides hoped to conclude an agreement by the
policies toward the region—driven by the U.S. withdrawal
end of 2017; while that goal was missed, efforts are
from the Trans-Pacific Partnership and the Paris Climate
ongoing for a final agreement.
Accord, the possibility of the collapse of the North
Trade and Development Dimension
American Free Trade Agreement (NAFTA) with Mexico
and Canada, and an October 2017 statement by U.S. Trade
The EU is one of the top three trading partners of the
Representative Robert Lighthizer that U.S. FTAs with Latin
CELAC and one of the largest providers of development
America may need to be reviewed—the EU is refocusing its
assistance to the LAC region. In addition to the overall
long-range policy goals and commitments in Latin America
volume of trade between the EU and the LAC region, the
to be prepared to seize any opportunities that might arise
EU relies on modest levels of oil and liquefied natural gas
should a political or economic vacuum be created by a
(LNG) imports from the LAC region.
change in U.S. policies toward the LAC region.
The EU is economically linked to the LAC region through a
Vincent L. Morelli,
series of Association Agreements (Chile, Cuba); free-trade
IF10242
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The European Union and Latin America

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